07-14-2009 CC RPT 35 - Laserfiche WebLink

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• " City Council Memorandum TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JULY 14, 2009 FROM: CITY MANAGER - FINANCE ITEM NO: 35 WARD: ALL SUBJECT: DETERMINING THE ANNUAL TAX RATE FOR THE GENERAL OBLIGATION BONDS (FIRE BONDS) FOR FISCAL YEAR 2009110 - RESOLUTIONS ISSUE: This report will provide the authorization to levy a tax rate on the County tax bill sufficient to pay for the debt service on the general obligation fire bonds, issued based on the voter-approved Measure G in November 2003. The County requires the adoption of two resolutions to authorize placement of the tax rate on the bill for the 2009/10 fiscal year. Those resolutions are attached to this report. RECOMMENDATIONS: That the City Council: Consider and adopt the resolution ascertaining and fixing the amount of property tax revenue needed to fund the debt service requirements for the Fire Bonds for the 2009/10 fiscal year; and 2. Consider and adopt the resolution fixing the rate of taxes to be levied for bonded debt service for the Fire Bonds for the 2009/10 fiscal year. BACKGROUND: On November 4, 2003, voters of the City of Riverside approved Measure "G" authorizing the City to issue $20 million of general obligation bonds. These bonds fund the replacement of inadequate and outdated fire facilities. The bonds were issued in June 2004 with debt service beginning February 2005. The authorizing ballot measure limited the supplemental tax rate to no more than $12 per $100,000 of assessed valuation for a period of not more than thirty years. The bonds were issued as a 20-year obligation and the tax rate is projected to be far less than the authorized maximum of $12 per $100,000 of assessed valuation throughout the term of the bonds. Each year the City Council must adopt two resolutions in order to place the supplemental taxes for bonded debt service on the County tax roll. The first resolution determines the amount of funds required to pay debt service on the bonds over the next year. The second resolution approves the tax rate needed to generate the amount of funds noted in the first resolution for the payment of debt service on the bonds in the next year. The amount of debt service due next year is $1,482,383, representing principal and interest. Excess funds from the prior year in the amount of $300,000 will 35-1